TOTAL
ORDER
Annual Report
2014
MAJOR BUSINESS DIVISIONS

In 2014 Division “Poultry farming and egg production” focused on production volume and effectiveness increase, and logistics elaboration.

At year end the enterprises of the Division produced 890 349 eggs, that makes 3.1% of the total egg market in Russia.

Business-plan system on the IBM Cognos platform implementation at “Varaksino poultry plant” LLC carries out multivariate break-even analysis and make exact evolution scenarios. Within the framework of productive efficiency increase we continued integration of 3 manufacturing areas of Varaksino poultry plant, by means of slaughter process, egg processing and dispatch unification.

Within the framework of productive efficiency increase we converted one of boxes for young stock into the box for egg laying birds keeping. This brought the option for extra 23 million eggs production annually. Performance of productive efficiency increase program, which was elaborated in cooperation with topline experts in the sphere, allowed the poultry plant to reduce feed costs, increase mortality rate, 1st class egg yield and strengthen economics indices.

One of the significant steps towards distribution evaluation was logistic complex starting at “Varaksino poultry plant” in Izhevsk. The complex helps to process and pack up to 1.9 million eggs per shift. Inventory control automation on the basis of WMS system, centralization of eggs processing, storage and dispatch from several manufacturing areas will upgrade production, reduce costs and delivery time. At the year-end 2014 the packaged egg share within the sale system of the Company rose from 214 to 24%, in 2015 we intend to make in 44%. In 2015 we are also about to build modern shell-egg handling plant and install new sorter at “Mendeleevskaya poultry plant” LLC in Perm region. This innovation will help to raise market egg yield from 95% to 98%, increase packaged egg share up to 30% in total output.

In 2014 “Poultry farming and eggs production” Division completed investment project for logistic complex starting at “Varaksino” poultry plant
24%
76%
PACKED EGGS SHARE WITHIN
THE SALES PATTERN

We upscale sales in leading retails to exploit our products in the federal market: the share of sales through the federal retailers rose from 8% to 12%. Distributor contract with “Praksis OVO” provided 10 million eggs under the brand name “Selo zelenoe” delivery to Moscow and Moscow region, total amount of “Selo zelenoe” eggs sale rose twice. In 2015 we will increase sales volume in federal retailers, promote own brands awareness and extend Private Label.

In order to support further development of the production we are planning to launch 8 already-existing and 2 new boxes reconstruction at “Varaksino poultry plant” and “Mendeleevskaya poultry plant”. This will increase egg-laying birds’ livestock. By 2015 gross collection will have increased by 135 million eggs. We will start project developing for modern technology for excrement recovery implementation. Besides our plant is going to launch water and wastewater treatment facilities reconstruction. These will improve ecological efficiency.

KEY PERFORMANCE INDICATORS

Indicator 200920102011201220132014
Sales revenue, million rubles 1 5261 6212 2162 3352 5972 858
Net profit, million rubles 813199098182417*
Net assets, million rubles 8361 0501 3591 3491 3471 338
EBITDA, million rubles 205452309346475679
EBITDA, % 1327,913,914,818,323,8
*Изменение показателя обусловлено снижением стоимости зерна/кормов и повышением цены реализации продукции.

PRODUCTION DYNAMICS

Eggs, thousands
607 581
629 056
802 532
831 497
864 494
890 795
872 429*
2009
2010
2011
2012
2013
2014
2015
(forecast)
*Снижение оъемов производства обусловлено проведением плановой реконструкции.